Broward County CommissionBoard Workshop

ATTAINABLE HOUSING ISSUES

Tuesday, December 1, 2015

AGENDA OVERVIEW

• Potential Attainable Housing Linkage Fee on New Non-Residential Development

• Methodology - County Land Use Plan Policy 1.07.07

• BrowardNEXT Attainable Housing Update

Potential Broward County Attainable Housing Linkage Fee for

Non-Residential Development

BROWARD COUNTY LEADING OCCUPATIONS

Source: Bureau of Labor Statistics.

BROWARD COUNTY MORTGAGE STATUS BY SELECTED MONTHLY OWNER COSTS AS A

PERCENTAGE OF HOUSEHOLD INCOME

Source: FIU Metropolitan Center, 2014.

BROWARD COUNTY RENT AFFORDABILITY BY HOUSEHOLD INCOME CATEGORIES

Income RangeMedian HH

Income Broward County

Broward County Median Rent

31% 50% 31% 50% 31% 50% 31% 50%

$15,891 $25,631 $1,324 $2,136 $397 $641 $774 $530

51% 80% 51% 80% 51% 80% 51% 80%

$26,143 $41,009 $2,179 $3,417 $654 $1,025 $517 $146

81% 120% 81% 120% 81% 120% 81% 120%

$41,521 $61,513 $3,460 $5,126 $1,038 $1,538 $133 $367

Affordability Gap @ Mean

Very Low Income: 31-50% of Median HH Income

Low Income: 51-80% of Median HH Income

Moderate Income: 81-120% of Median HH Income

$51,261 $1,171

Income @ Range

Monthly HH Income by

Range

Affordable Rent @ 30% of Income

Source: U.S. Census, 2013 ACS.

Presented by Henry Sniezek, Deputy Director, Environmental Protection and Growth Management Department

Review of the Housing Linkage Fee Nexus Study

WHAT ARE HOUSING LINKAGE FEES?

Linkage fees are a tool for local governments to help support affordable housing. Such fees may be assessed at the time of new development and are placed in a fund specifically used for the construction and/or maintenance of affordable residential units.

LEGAL ISSUES: Under law, there must be a rational nexus between the fee and the demand for affordable housing resulting from the new construction.

EXAMPLES: Cities that have Adopted a Linkage Fee Program

Coconut Creek, FL

Village of Islamorada, FL

Winter Park, FL

San Diego, CA

Seattle, WA

Boston, MA

Boston Linkage Fee for Large-Scale Developments Produces Jobs and Housing by Housing Trust Fund. This Victorian has been fully rehabilitated into 17 affordable enhanced Single Room Occupancy units, 2 of which were set-aside for people who had been homeless.

EXAMPLE: San Diego linkage fees per square foot

Rendering of the Kalos apartment building in North Park— San Diego Housing Commission

2007-2008 Broward County Affordable Housing Linkage Fee

Initiative

October 2007, the County Commission engaged the FIU/MC to prepare a Housing Linkage Fee Nexus Study for non-residential development.

•Legally defensible Rational Nexus established to the satisfaction of the Broward County Attorney’s Office.•Established a nexus cost per square foot for different non-residential uses.

April 2008, the County Commission held an Affordable Housing Workshop, and directed staff to seek input from interested parties on key policy issues related to a housing linkage fee and identify implementation measures (e.g. fee levels, waivers, use of funds, etc.).

•The initiative was put on hold in September 2008 due to the onset of the “Great Recession.”

Focus on Affordable Housing: Post “Great Recession”

2013 - 2015

* County Commission held a workshop concerning Affordable Housing (10/13).

•Consensus to revisit non-residential housing linkage fee program.

• Other options also discussed (County Land Use Plan Policies, Bonus Densities, Inclusionary Programs, State Funding.)

* The FIU/MC was retained to update the 2007 Affordable Housing Linkage Fee Nexus Study.

•January 13, 2015, the Study was accepted by Broward County Staff.

•The updated study established current nexus costs per square foot for various employment categories in various non-residential uses.

* Approximately 70 persons attended a staff held public workshop in May, 2015 to solicit input from municipalities, the development community, affordable housing proponents, and other affected and interested stakeholders concerning linkage fee implementation, potentialfee levels, few waivers and exemptions, fee distribution and use, and timing of assessment.

HOW WAS THE NEXUS COST ESTIMATED?

1. Determine building prototypes

The analysis examined seven types of workplace building types:

• Office• Retail/Wholesale• Institutional

(Medical/Educational)• Manufacturing/Industrial• Warehousing• Hotel (Hospitality)• Entertainment

HOW WAS THE NEXUS COST ESTIMATED, cont.?

2. Estimate number of new employees as a result of the 100,000+ sq. ft. prototypes based on industry-specific average employee density figures.

3. Estimate wages based on occupation and income information for expected job types in the 100,000+ sq. ft. building prototypes by industry.

4. Calculate the number of households related to the estimated number of new employees by jobs at each income level and by building type.

5. Determine the number of housing units needed to accommodate the households generated for each income level (Housing Unit Demand).

6. Multiply the gap in household income needed to obtain affordable housing for each income level by the number of households in each income level (Total Nexus Costs).

7. Divide the total nexus costs by the median building size for building type (Nexus Costs Per Square Foot).

EXAMPLE: Housing Nexus Cost Calculation Retail/Wholesale Building

Source: FIU Metropolitan Center, 2014.

IncomeCategory

IMPLEMENTATION ISSUES

POTENTIAL FEE LEVELS?

Retail and Office Between $1.00* and $5.00 per (including restaurants)square foot?

Other non-residential Between $.50* and $2.50 per

square foot?

* If assessed in 2014, approximately $2 million would have been collected.

EXEMPTIONS/WAIVERS?

•Public projects/facilities (including public schools)?

•Houses of worship?

•Not-for-profits?

•Any municipality with its own linkage fee program in effect prior to the adoption of the County’s program?

•Any municipality that adopts its own linkage fee program after the adoption of the County’s program, which has been demonstrated to have fee levels equal to or greater than the County’s?

DISTRIBUTION OF REVENUES?

•Broward County Housing Finance & Community Redevelopment Division distribution of funds by geographic area

• Entitlement CitiesoState Housing Initiative Partnership (SHIP) ProgramoHOME Investment Partnerships Program (HOME)

•Competitive Process

TIMING OF ASSESSMENTS?

Broward County Development and Environmental Review process.

CONTEXT - ESTIMATED COST OF DEVELOPMENT

EXAMPLE 1:

EXAMPLE 2:

EXAMPLE 3:

EXAMPLE 4:

BOARD DIRECTION - POTENTIAL NEXT STEPS?

• Advance Agenda Item – “Motion to

Direct”

• Advance with a Package of Proposals

(e.g. Update of County Land Use Plan

Policy / Density Bonus Program)

• Hold for Further Evaluation

QUESTIONS/COMMENTS

MethodologyCounty Land Use Plan Policy 1.07.07

Ralph Stone, DirectorHousing Finance and Community Redevelopment Division

Robert Von, President Meridian Appraisal Group

EVALUATION OF RECENT STUDIES SUBJECT TO CURRENT RULE

- Most recent two studies submitted to the Planning Council were evaluated

- Both studies found to contain “flawed” analysis

PROPOSED UNIFORM METHODOLOGY - Brief overview of new proposed uniform

methodology  - Draft methodology was calculated for all

municipalities and transmitted for review prior to Public Workshop

RULE 1.07.07 METHODOLOGY NEXT STEPS 

- Public workshop was help on October 15, 2015 at the Government Center - Planning Council request for public comments due December 1, 2015

- League of Cities Board Meeting – December 3, 2015 - Planning Council review and recommendation December 17, 2015 at 10:00 a.m. at Government Center Commission Chambers - BCC review and transmittal to State January 26, 2016  - Planning Council final recommendation March 24, 2016 - BCC adoption April 26, 2016 (tentative meeting date)

Attainable Housing UpdateBarbara Blake Boy, Executive DirectorBroward County Planning Council

BROWARDNEXT WHERE WE ARE

OUTREACH/COORDINATION• Planning Council Ad Hoc Committee• Workshops• Over 60 visits to municipalities and

interested parties• On-line survey

FRAMEWORK FOR NEXT STEPS

SECTION 1Highlighted Regional Issues and Strategies 

Multi-Modal Transportation Attainable Housing Targeted Redevelopment Renewed Partnership - Intergovernmental

Coordination Climate Resiliency State of the Art Environmental Protection Disaster Prevention and Post-Disaster

Planning

FRAMEWORK FOR NEXT STEPS

SECTION 3Land Use Plan Recommended Practices

SECTION 2General Land Use Plan Requirements: Implementation Policies, Programs, & Incentives 

Enabling Legislation for Countywide Programs State/Statutory Requirements Implementation Requirements Incentive Programs Land Use Plan Map Series

POTENTIAL STRATEGIES * Support sustainable funding sources to develop and/or rehabilitate attainable housing.

* Support the development of housing which utilizes construction techniques affording significant costs savings, while meeting the Florida Building Codes, including resiliency to hurricane-level storms.

* The Broward County Land Use Plan shall include an Attainable Housing Density Bonus Program, including promoting a supply of smaller, traditionally attainable units, such as efficiency units.

* Municipalities should adopt a comprehensive strategy to ensure a sufficient supply of attainable housing.to

Example

THANK YOU!